Company Registration in Thailand

” For the Thai company limited, the company has owned by at least three shareholders and has managed by at least one director.  The Thai Limited Company is the most common type of company structure used to set up business in Thailand. The process is simple and the business can engage in a wide range of activities. “

In Thailand have 2 type of that as follow;

          Thai Limited Company (Thai Majority)

In a Thai majority-owned limited company, the Thai nationals must own at least 51% of the shareholding of the company. Since the majority of its shareholding is Thai, then, a Foreign Business License (FBL) is not required. A limited company that is majority-owned by a Thai national generally does not encounter restrictions.

          Thai Limited Company (Foreign Owned)

A Foreign majority-owned company limited is defined to be a business with over 49% foreign ownership. The business operations and activities involving foreign nationals and entities are governed by the Foreign Business Act. Business entities of majority foreign ownership are required to obtain a Foreign Business License before commencing its operations in Thailand.

          Steps For Register a Limited company in Thailand:

Step 1: Corporate Name Reservation

The name reservation guidelines provided by the Department of Business Development (DBD) in the Ministry of Commerce, should be observed in reserving any company name. This step of Thai company registration is requires 2-3 days to be completed.

Step 2: Filing the Memorandum of Association

After your company name has been reserved, all shareholders must sign a Memorandum of Association (MOA). A Memorandum of Association to be filed with the Department of Business Development must include the name of the company that has been successfully reserved, the province where the company will be located, its business objectives, the capital to be registered and the names and information of the promoters.

Step 3: Convene A Statutory Meeting

After the share structure has been defined, a statutory meeting will be summoned where the articles of incorporation and bylaws are approved, the Board of Directors is elected and an auditor is appointed. A minimum of 25 percent of the par value of each subscribed share must be paid.

Step 4: Registration of the Company in Thailand

The Company Directors must submit the application to establish the company within 90 days of the date of the Statutory Meeting, together with Company registration fees.

Step 5: Tax Registration

Businesses liable for income tax must obtain a tax I.D. card for the company from the Revenue Department. If the business’ gross income in the same fiscal year has reached 1.8 million baht within 30 days of the date they reach 1.8 million baht in sales. The business is generally required to be in the VAT system.

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